Tokyo Gas, the Japanese utility and LNG buyer, is anticipating a slight dip of 0.2% in its fiscal 2018 city-gas sales volume to around 15.54 Bcm, owing to industry deregulation and growing competition in the Japan’s gas and power markets. This trend is in line with the utility's expectations of a decline in commercial and residential gas demand. “Meanwhile, we estimate a rise in operating expenses, primarily reflecting higher resource costs, owing mainly to the impact from the climb in crude oil prices,” Tokyo Gas said in an investors' briefing.
In 2018, three cargoes - each providing around 0.1 billion cm of liquefied gas - have come directly to British regas facilities from Yamal LNG in Russia. But as the UK is preparing for another cold snap, and there’s talk that the country is too reliant on Russia for LNG. Murray Douglas, research director, Europe Gas, evaluates if fears are overstated and where British gas buyers can turn to secure top-up supplies.
Diversifying electricity sources, Oman Power and Water Procurement Company (OPWP) has floated a tender in search for a consultant to carry out a feasibility study for the country’s first waste-to-energy project. Capacity of the plant and capital expenditure will be specified later.
Insisting it needs more time, the European Investment Bank (EIB) has pushed a decision on whether to lend €1.5 billion to the Trans-Adriatic Pipeline (TAP) into early 2018, leaving project developers in limbo over the future of this strategic pipeline link in the EU’s Southern Gas Corridor.
The Asian Development Bank (ADB) has approved debt financing and partial risk guarantees worth $583 million to help Reliance of India develop a $1billion project in Bangladesh, consisting of an LNG import terminal near Kutubdia Island and adjacent gas power generation.
Plans for another FRSU with 17 mtpa regas capacity and an onshore LNG terminal show the government of Bangladesh “is clearly in support to boost its LNG supply,” Wood Mackenzie comments. Already, private capital is being attracted to this sector with Summit Power, Reliance Power and Petronet looking to invest in these terminals.
Reliance Power still faces uncertainty over the source of LNG supply for its 718-MW gas-fired power plant project in Bangladesh, and is awaiting a government decision on the matter. The Indian energy company is the first to build a power plant that will run on regasified LNG in neighbouring Bangladesh; but to operate the plant near full capacity Reliance needs around 110 million cubic feet per day (mmcf/d) of natural gas as fuel.
The Cabinet of Bangladesh has given the green light to Reliance Power of India for building a 750-MW combined-cycle gas power plant at Meghnaghat, in the country’s central Narayanganj district. Running on imported LNG, all electricity produced by the power unti will be sold to the Bengali grid operator at an agreed price of $0.73/kWh. The unit is part of a wider LNG-to-power project with up to 3,000 MW, including an FSRU and power interconnectors to export part of the electricity to India.
Limited available land to realise its proposed 3,000 MW combined-cycle gas power plant in Meghnaghat, Reliance Group will now develop a 750 MW plant instead and sell more electricity from Bangladesh to India. The smaller CCGT will be powered by regasified LNG sourced via an FSRU that it will set up at Moheshkhali.
With natural gas being used to generate over 62% of Florida’s electricity needs, the US state is at risk of being over-reliant on this fuel source, the Union of Concerned Scientists warned. Florida Power & Light, however, called the study “incredibly flawed.”